Appraisal and Valuation Services for Renewable Fuels Industry. Determining and documenting the value of a renewable fuels businesses and plants is done for a variety of reasons. The most common occasions for seeking an appraisal of the ethanol, biodiesel or other renewable fuels businesses and plants arise when they are created or constructed, bought or sold, and concern financing, investment due diligence and tax reporting. There are many other accounting, legal, bankruptcy and litigation uses. These are complex businesses and assets, requiring specialized industry, financial and engineering capabilities within the appraisers. Valuations must consider an asset approach (cost approach, what is the cost to create the business or build the plant), a market approach (sales approach, where sales in the market for such businesses and plants indicate value) or an income approach (where the business’s or plant’s earnings are forecast long term, and converted to an opinion of value). All financial aspects of the business or plant must be forecast in the income approach, such as all income and expense levels, taxes, debt, related commodity prices, incentives, short and long term trends, and of course, standard and special risks. It is key in these appraisals to know when one or more of these approaches are inappropriate or less than precise.
Depending on the client’s purpose and use for which the service is needed, there are many types of Appraisal and Valuation Services, each varying in complexity and cost. The simplest is the value calculation. These provide an approximate indication of value based upon limited procedures. The next step would be a summary appraisal. This report contains a summary of the material factors that leads to the conclusion as to value and may or may not have limited procedures. The highest level is the full analysis, extensive narrative appraisal. This is a lengthy presentation of the appraisal of the business or plant, where the analysis approaches completed in the appraisal are not limited. The full analysis, extensive narrative appraisal is usually needed for investment, financing, litigation, and some SEC and IRS uses.
Experts in appraisal of renewable fuels business and plants must have substantial and specialized economic and engineering capabilities, in addition to the general and specialized appraisal capabilities. These skills include business appraisal, machinery and equipment appraisal and real property appraisal capabilities. The appraisers ought to be designated by the American Society of Appraisers or the Appraisal Institute, and may require state licensure. We have such qualifications. Bioeconomy consulting firms like Lee Enterprises Consulting, Inc., have ASA Certified Sr. Appraisers in Machinery & Equipment as well as other specialties, and Certified Business Valuations Experts, as well as designated subject matter experts in biofuels/renewable fuels, biomaterials, biomass and biomass power, feedstocks, biotechnologies and a variety of specialty services. The expertise encompasses things like algae biofuels, aviation/biojet fuels, ethanol, cellulosic ethanol, advanced biofuels, biodiesel, renewable diesel, renewable natural gas, renewable and biochemicals, biogas, syngas, biochar, bio coal, biobutanol, pyrolysis oil, producer gas and wood pellets. It will also encompass an expertise in technologies like agitation systems, anaerobic digestion, bio-oil extraction, bioreactors, carbon capture, carbon storage, , carbonization, catalysis, cellulosic ethanol, cleantech, direct combustion, , enzyme technologies, fermentation, Fischer-Tropsch, gasification, genetic engineering, hydrothermal, nanotechnology, organosynthesis, power generation, pyrolysis, renewable technology due diligence, synthetic biology, thermochemical conversion, torrefaction, and waste management.
Lee Enterprises Consulting is the world’s premier bioeconomy consulting group, with over 100 highly qualified experts serving in all these areas. We have Appraisal and Valuation Services available. Take a look at our experts and the services we provide. Most of our experts are also available to advise and serve as expert witnesses in bioeconomy litigation matters. For the larger projects, we specialize in putting together full service, interdisciplinary teams with one point of contact. Call us at 1+ (501) 833-8511 or email us for more information. See Appraisal and Valuation Considerations in Acquisitions.
